A majority of members in the New Zealand Institute of Economic Research's monetary policy shadow board recommended that the Reserve Bank of New Zealand keep the official cash rate steady at 3.25% in the upcoming July monetary policy review, according to a Monday statement.

There are both upside and downside risks to inflation in the near term, given the recent pick-up in annual consumer price index inflation and heightened global risks, per the statement.

The view of the shadow board's members about where the official cash rate should be in a year lay in a range between 2.75% and 3.25%. They considered the monetary policy easing cycle to be approaching its end over the coming year, and that the central bank continuing to apply a wait-and-see approach beyond July would be appropriate.

Several members saw little room for further interest rate cuts over the coming year due to increased ambiguity over the country's economic and inflation outlook. However, two members considered further official cash rate cuts as necessary to support recovery in the economy.